Pound struggles to hold its own against majors
22 August, 2017
Following an array of underwhelming economic figures and political uncertainty over these past few months and since the announcement of Brexit last year, the Pound struggles to hold its own against majors. Yesterday, although there was no data out to move rates, the Pound fell to fresh new lows against the Euro in the afternoons trading. Continuing to show that market sentiment remains heavily with the Euro and sparking further fears that the trend is set to continue. GBP-USD rates have also been moving downhill so far this month. Again proving that Sterling is taking a downhill turn.
Those readers who have an upcoming exchange in the next few months or have plans to buy overseas property and may be putting off exchanging their funds on the hopes that things will turn around could be waiting for some time. All the while that you are waiting, overseas house price’s have reportedly increased and this paired with the current downward market trend could means that waiting may prove more costly.
More can be lost through indecision rather than a poor decision. If you are unsure about when to trade, failing to recognise that the market is unfortunately on a downward movement and holding out for rates to pick up or improve may not be the wisest move. GBP-EUR rates have lost 10 cents in the last 6 months. To put it into context, on a property purchase costing €100,000, today it will be around £8000 more expensive than it was 6 months ago.
Today brings another quiet data for economic data, we have German ZEW economic sentiment this morning at 10:00 and Canadian retail sales due after lunch at 13:30.
If you are worried about the current trend and you have an upcoming requirement, our Forward contract may be the answer. They allow you to guarantee your rate for up to 2 years with just a 10% deposit. Eliminating any fears of further downfall and securing your Euro requirement ahead of settling the full sterling balance. Speak to one of the friendly brokers here at Currency Index for further information.
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